A clearer path
to debt-free.

The first selected month is one full interest period. Interest is the opening balance × annual rate ÷ 12, rounded to cents for each debt. Monthly fees are then added, followed by month-end payments. Enter the full contractual monthly instalment, including any fee you also enter separately; the fee field represents a cost added to the balance, not another payment.

Minimum payments stay fixed at the amounts you enter. Every minimum is paid before spare money is allocated. Money freed by a partial final payment is reused in the same month. There is no new borrowing. Fees stop once a debt is settled.

Highest interest first directs spare cash to the debt with the highest rate in that month. Smallest balance first directs it to the smallest remaining balance after minimum payments. The order can change as balances and rates change. A final balloon deadline takes priority over both strategies.

The comparison with no extra payment still rolls freed payments into the other debts; it keeps the same strategy, rates, fees and available balloon cash. This is not a comparison against declining credit-card minimums. Promotional rates, fees and maturity cash can change which strategy costs less; neither is presented as universally optimal.

Background: CFPB guide to debt repayment strategies.

A promotional rate applies for the stated number of full payment months, then switches to the normal annual rate. A zero-interest promotion is supported. Deferred or retroactive interest, variable rates and multiple future rate changes are not modelled.

For a balloon loan, include the balloon in the current total balance. At the end of the specified month, the entire remaining balance is due. The calculator derives that final amount from the balance, interest, fees and earlier payments. Enter only additional cash you expect to have available at that date; R0 assumes no separate funding.

Stated minimums are paid first, then earmarked cash is applied to the debt due. Spare monthly budget goes to any remaining amount due before the normal strategy resumes. Multiple maturities in one month use spare budget in the order entered. Unused earmarked cash is not redirected to other debts. If cash is insufficient, the projection stops and shows the gap. It does not assume refinancing.

Lenders may calculate interest daily, change minimum payments, apply charges differently or restrict how prepayments reduce a balloon. This tool assumes prepayments immediately reduce the outstanding balance without penalties. Credit insurance, once-off charges, settlement adjustments, arrears and default costs are excluded unless already reflected in your inputs.

Check the rate, instalment, maturity terms and settlement balance with your lender. Estimates run for up to 600 months (50 years). This calculator is general planning information, not a settlement quote, credit offer or debt-counselling service.